LensCrafters 2012 Annual Report Download - page 205

| 119 >CONSOLIDATED FINANCIAL STATEMENTS - NOTES
and those that are not reclassified to profit or loss (non-recyclable). If items of other
comprehensive income are presented before tax, then income tax is allocated to each
respective group. The amendments do not change the existing option to present an
entity’s performance in two statements; and do not address the content of performance
statements (i.e., what is recognized in profit or loss and what is recognized in other
comprehensive income) or recycling issues (i.e., what can be reclassified (recycled)
subsequently to profit or loss and what cannot). The amendments are effective for fiscal
years commencing after July 1, 2012. The Group has not early adopted the amendments
to IAS 1. The European Commission endorsed the standard on June 5, 2010 with
regulation number 475.
Amendments to IAS 19 - Employee benefits, issued in June 2011. The standards make
significant changes to the recognition and measurement of defined benefit pension
expense and termination benefits, and to the disclosures for all employee benefits.
Actuarial gains and losses are renamed “re-measurements” and will be recognized
immediately in “Other Comprehensive Income” (OCI) and will never be recycled to
profit and loss in subsequent periods. Past-service costs will be recognized in the
period of a plan amendment; unvested benefits will no longer be spread over a future
service period. A curtailment now occurs only when an entity reduces significantly
the number of employees. Curtailment gains/losses are accounted for as past-service
costs. Annual expense for a funded benefit plan will include net interest expense or
income, calculated by applying the discount rate to the net defined benefit asset or
liability. There will be less flexibility in income statement presentation. Benefit cost
will be split between (i) the cost of benefits accrued in the current period (service
cost) and benefit changes (past-service cost, settlements and curtailments) and (ii)
finance expense or income. This analysis can appear in the income statement or in the
notes. The standard is effective for annual periods beginning on or after January 1,
2013. Earlier application is permitted. The Group has not early adopted the standard.
The European Commission endorsed the standard on June 5, 2010 with regulation
number 475. The Group estimated that the application of the standard will result in an
increase in pension expense in 2013 of approximately Euro17.5 million (approximately
Euro11.9 million in 2012).
IAS 28 - Investments in Associates and Joint ventures, issued in May 2011. The standard
supersedes IAS 28 Investments in associates, as amended in 2003. The standard
incorporates the accounting for joint ventures and certain amendments discussed by the
standard setting board during its deliberations on the exposure draft ED 9. For IAS 28 the
IASB indicated January 2013 as the effective date. The European Commission endorsed
the standard on December, 11 2012 with regulation number 1254 and postponed by
one year the original effective date set by the IASB. The standard is now effective for
annual periods beginning on or after January 1, 2014 at the latest. The Group believes
that the application of IAS 28 will not have significant impact on its consolidated financial
statements.
Amendment to IFRS 7 and IAS 32 - Offsetting financial assets and financial liabilities. The
amendments require additional quantitative information which enables the users to better
compare and reconcile the information provided by the financial statements as a result
of the application of IFRS 7and IAS 32. The amendment is effective for annual periods